Victoria’s Secret is going private. And the retail industry is losing its longest-serving chief executive. The deal will mean that L Brands will now be responsible only for running its other division, Bath & Body Works, which has been outperforming Victoria’s Secret for some time. Once the transaction closes, L Brands CEO Les Wexner, 82, will step down from his post, staying on as chairman emeritus.
Wexner, a pioneer of mall-based specialty store retailing and L Brands largest shareholder with a 16% stake, is the longest-serving CEO of an S&P 500 company. He opened his first store, The Limited, in 1963, and went on to grow a retail empire. In 1982, Wexner bought Victoria’s Secret, a small lingerie chain on the verge of bankruptcy, for $1 million.
“We believe this structure will allow Bath & Body Works – which represents the vast majority of 2019 consolidated operating income – to continue to achieve strong growth and receive its appropriate market valuation,” Wexner said. “We believe the separation of Victoria’s Secret Lingerie, Victoria’s Secret Beauty and Pink into a privately held company provides the best path to restoring these businesses to their historic levels of profitability and growth. Sycamore, which has deep experience in the retail industry and a superior track record of success, will bring a fresh perspective and greater focus to the business.”
